Private placement rules limit subscribers to an identified group and require prescribed offer cum applications and returns of allotment.

The substituted section permits a company to make a private placement only to a board identified select group of persons not exceeding the prescribed number, via a prescribed private placement offer cum application that carries no right of renunciation. Application monies must be paid by banking channel and held in a separate scheduled bank account for allotment adjustment or repayment. Allotment must occur within sixty days and a return of allotment filed within fifteen days; exceedance of the prescribed number of recipients renders the issue a public offer governed by the Act and securities law.

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